Buying vs. Renting: 8 Reasons You Really Want that Mortgage
Buying a house is a huge financial commitment, and many adults find the decision between renting and buying to be a tough one. Renting does have a few advantages, especially if you don’t know where your career will take you, or you’re not in the financial position to buy the home you really want. However, the perks of owning your own home are hard to deny. The following eight advantages of buying your home may persuade you to take the plunge.
- A recent study found that in large metropolitan areas, buying a home is 38 percent cheaper on average than renting. The savings varies by location, but owning a home was less expensive in all of America’s 100 largest metros. Savings rates were highest in the Midwest and the South. Another study found that buying was cheaper than renting in three out of four housing markets.
- As a homeowner, you are free to customize your property. You can knock down walls, create new bedrooms, add a custom shower, finish your attic or basement or install lime green carpeting on your ceiling if you so desire. There’s no security deposit to worry about, and you only need to stick to neutral decor if you plan to sell in the near future.
- If you purchase a home, you’re likely to stay there. When you’re a renter, you find yourself moving around often, and this means frequently buying new furnishings to fit your new space. In the long run, you’ll save tons of money on decor and moving expenses if you buy.
- As a renter, you have a few options to save money by switching to energy-efficient household products, but energy-saving structural improvements can only be added by your landlord. When you own your own home, you are free to modify it with advanced green features like solar panels, energy-efficient roofing and upgraded windows.
- When you own your home, repairs are in your hands. Although you might initially see this as a curse rather than a blessing, it means that you’ll never have to wait weeks or months for a landlord to fix a broken water heater or air conditioning unit. It’s your home, and you’re always in control.
- Buying a home teaches you to save and invest your money wisely. Once you’ve paid off your mortgage, you can sell the home and walk away with a significant payoff.
- Owning a home provides an opportunity to build additional income streams. If you have extra bedrooms, you can rent them to students, or use the extra space to store supplies you’ll need for a home-based business. You can even monetize your home by offering child care services, hosting sales parties or renting green space to people who want to grow their own food.
- You’ll never have to deal with an eviction notice. As a renter, you may face serious personal and financial crisis if your landlord decides to sell the house, end the lease unexpectedly or tell you that you’re no longer allowed to live with your beloved pets. Having a secure and stable place to live is important, especially as you get older. When you take on the commitment of a mortgage, you always have a place to call home.